Bitcoin Looking At A ‘Very Bullish Setup’ Ahead Of US Election, Industry Expert Says

Matthew Sigel, head of digital assets research at VanEck, sees Bitcoin (CRYPTO: BTC) on a strong upward path as the U.S. presidential election approaches, bolstered by growing interest and shifting macroeconomic conditions.

What Happened: “Our bet is that this is a very bullish setup for Bitcoin into the election,” Sigel told CNBC on Monday, pointing out that factors such as Trump’s increasing popularity in prediction markets and renewed optimism in the crypto sector are helping drive demand.

According to Sigel, Trump’s position as the more pro-crypto candidate, compared to Vice President Kamala Harris, is likely fueling confidence among crypto investors.

Sigel highlighted Bitcoin’s strongest long-term correlations: a negative relationship with the U.S. dollar and a positive relationship with money supply growth, which has accelerated recently due to the Federal Reserve’s pivot on interest rates.

This increase in money supply is contributing to Bitcoin’s upward momentum, along with a “seller’s exhaustion” phase following significant sales by both the German and U.S. governments.

Sigel described these government Bitcoin sales, totaling around $2 billion, as “spiteful,” referring to seizures and subsequent sales intended to prevent criminal misuse of the asset. “That has eased, and I think the election is helping,” he …

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